By Curtis G. Kimble.
The 2012 general session of the Utah Legislature ends tonight at midnight and only one small change to a current law and no new laws affecting condominiums and homeowners associations were passed this year. This is probably welcome news to the many boards and management committees that were likely more than a little overwhelmed by last year’s many changes.
The only change this year is to the law regarding reserve studies. A board is required to conduct a reserve study every five years and to review and update it every two years. But, when S.B. 56 goes into effect on May 8 of this year (assuming it’s signed by the Governor), a board will only have to conduct a reserve study every six years and review and update it every three years. While industry professionals generally agree that a reserve study should be updated more frequently than that, even annually, and many states require an annual review and update of a reserve study, this change to the law will take some pressure off boards.
No other new laws or changes affecting condos and HOAs will go into effect this year. Next year, expect to see more significant changes proposed that haven’t been seen yet. I have a feeling we can also expect to see that Ombudsman bill (H.B. 56) that I explained here proposed yet again.
It seems much satisfying results came from session. Updating is definitely required in reserve study to meet the current trend. Only updated and current reserve study association can give a client full satisfaction.